Introduction to Microeconomics Essay Example | Topics and Well Written Essays - 1000 words

Introduction to Microeconomics - Essay Example pply in positively related to price because at a higher price producers can earn more profit by supplying more output.(Ian Hobday, p 100,105) In a market price is determined at the level at which demand equate supply as illustrated in figure 3. This discipline also offers explanation of factors that determine demand and supply. The factors that determine and influence demand are many. Demand is determined by changes in incomes of consumers, changes in tastes and fashion, changes in income tax, changes in population, changes in price of related goods, advertising and others. All of these factors bring shifts in demand curve and change equilibrium price and output. â€Å"British Gas reported 98 percent increase its six months operating profits of 2010 as compared to the same period during previous year â€Å"The profits reached to ?585m due to unusual cold winter which boosted the demand of  gas prices  by 8 percent.†( Aubin Lawrence, 2010) Price of related goods affects de mand has been witnessed, â€Å"With oil constantly trading above $100, consumers -- particularly those looking to buy cars -- are vying for alternatives that aren't too heavy on their wallets†(Debarati Bose,2011) Supply is determined by changes in costs of production, technical progress, changes in weather/disasters and others. All of these cause supply curve to shift and change equilibrium price and quantity.(Dan Moynihan and Brian Titley , p158-165) see figure 4 .On many occasions shortages are observed due to climatic changes and so forth. â€Å"European wheat stocks are expected to hit a 30-year low as dry weather could cut yields of some major European producers up to 20 percent†( Cat Contiguglia, 2011).See figure 4. Microeconomics analysis tells firms whether of raise prices or to decrease them. This...This paper demonstrates the main concepts of the Microeconomics. There is also 4 figures in the essay which graphically illustrates these concepts Microeconomics can be defined as a study of market behavior at micro level such as behavior of households and firms. It focuses on interactions between individual buyers and sellers and the factors that influence their decisions. In its broadest sense study of microeconomics deals with the efficient allocation of limited recourses that are available to fulfill unlimited wants of the society. This concepts is known as the basic economic problem which occurs due to scarcity. Due to scarcity individuals have to make a choice. This applies the principle of â€Å"opportunity cost† which is the cost of next best alternative forgone. Goods and services are produced by bringing together the four factors of production namely, land, labor, capital and enterprise. Production Possibility curve demonstrates principles of opportunity cost and full-employment Microeconomics explains price determination in goods and services markets and analyses the behavior of firms and consumers. This discipline also offers explanation of factors that determine demand and supply. Demand is determined by changes in incomes of consumers, changes in tastes and fashion, changes in income tax, changes in population, changes in price of related goods, advertising and others. Supply is determined by changes in costs of production, technical progress, changes in weather/disasters and others. with the help of microeconomics societies can predict behavior of firms and consumers and respond to possible changes in the markets. Causes and correlations can be identified with the help of theories that the disciple offers.

Economic and Moral Devastation Essay Example | Topics and Well Written Essays - 500 words

Economic and Moral Devastation - Essay Example Your long introductory paragraph is informative, but your topical statement in the opening remarks does not give a hint of the elaborative content that readers stumble upon through the paragraph. The mention of the period in question gives us a historical background. However, I would suggest an inclusion of characters in the society other than the Populist Party that raised the alarm on the possible outcomes of the changes that were being noticed. Failure to mention Karl Marx is a great injustice to your essay given he was in the front line while advocating against capitalism. As seen in his work, he was against the idea of exploitation of laborers and peasants to generate wealth for just a few in the society. In his work, he asserts that the state had allowed few characters to accumulate capital â€Å"by increasing the degree of exploitation of labor†.   Marx addresses the concerns of your essay better as he sees how the capitalists take advantage of the proletarians and tu rn their blood and sweat to their wealth. It even hurts to realize that labor does not fetch as much as before as its supply is plenty. As Mooney notices, â€Å"their high wages were gone for good†.I find your essay address those elements that came with capitalism, but it again falls short of expectation when you downplay the rise of social classes. The United States had become conscious of classes, and the working class was the latest development back then. As you use the Populist Party as your pillar in examining the morality of capitalism.